Bauxite cargo freight rates between Guinea and Spain reportedly record a 21-week-low drop

Freight rates to carry a 59,000 tonnes bauxite cargo from Kamsar, Guinea to San Ciprian, Spain on a Panamax-size vessel recorded a plunge to a 21-week low of US$ 10 per tonne amidst over-tonnage in the West African region, as reported on November 29.

According to S&P Global Platts data, the freight rates dropped since hitting an all-time high of US$ 13 per tonne on October 16, by US$ 3 per tonne or 23 per cent.

Market participants’ survey concludes that ships opening up in South Africa face difficulty in finding cargoes if they ballast to South America due to the current oversupply of tonnage on the Brazilian coast. Owing to this, owners looked further north to West Africa, resulting in too many ships with not sufficient cargo for owners to find cover.

"On top of bunker sliding, Kamsar is seeing low rates because of tonnage oversupply," a dry bulk ship operator based in Athens said.

Freight rates plunged to  after a Kamsarmax-size vessel was heard to have been fixed by Cobelfret at US$ 10.25 per tonne for a December 5 laycan. The freight rate for the Kamsar-San Ciprian Panamax route was last assessed at US$ 10 per tonne, down 25 cents from Wednesday, November 28.